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By Shadow Stock (Reporter)
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This Stock was Down 40% Today, Previous Value Opportunity

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For the period
ending 03/31/13 the following institutions held position in this stock that dropped
40% today (06/18/13);  

Third Avenue Management
LLC (6.52% of shares outstanding), Pzena Investment Management LLC (6.94% of
shares outstanding), Royce, Kennedy, Blackrock.

The stock also had
large insider purchase during 2013 above 10 per share.

None of this makes
it a value stock even after today massive 40% drop. But it does make it a
candidate for a closer a look.

JAKKS Pacific is
the 3rd largest toy-maker in the US. The Company develops, produces
and markets consumer toys, electronic products, pet toys and related products,
and other consumer products.

Today the stock
was crushed after reporting a 27% reduction in sales along with a 106.2M loss
or 2.14 per share. Wall Street was expecting a profit of .05 per share not a
2.14 per share loss. 
Furthermore, “JAKKS
slashed its full-year revenue guidance to $620 million from its previous
forecast of $694 million to $700 million, and it now estimates EPS losses of
$2.56 when it had previously anticipated reporting a profit of $0.63-$0.68 per
share this year.” The company also announced a restructuring, third quarter jobs
cuts , stores closed and/or rental leases not renewed, and other expenses cut.
JAKKS also suspended its quarterly dividend until the company returns to
profitability.
Lastly the
announced dividend cut is clear indication cash conservation is now a priority.

The risk is real in the highly competitive toy industry but building a position with a longer term outlook may outperform in this extended market.

Price = 7.00
Market Cap :
153.29M , Enterprise Value : 237.10M

Price/Sales (ttm):
0.37 ,Price/Book (mrq): 1.42

Enterprise
Value/Revenue (ttm): 0.35 , Enterprise Value/EBITDA (ttm): 21.31

Revenue (ttm):
671.43M , Revenue Per Share (ttm): 29.23

Qtrly Revenue
Growth (yoy): 6.40%, Gross Profit (ttm): 197.94M

EBITDA (ttm):
11.13M

Total Cash (mrq):
165.58M , Total Cash Per Share (mrq): 7.56

Total Debt (mrq):
153.51M , Total Debt/Equity (mrq): 86.36

Current Ratio
(mrq): 1.85 , Book Value Per Share (mrq): 8.11

52-Week Change3:
-56.25% , S&P500 52-Week Change3: 22.45%

52-Week High (Sep
6, 2012)3: 16.70 , 52-Week Low (Jul 18, 2013)3: 6.90

Shares
Outstanding: 21.91M , Float: 18.14M

% Held by Insiders:
16.98% , % Held by Institutions: 89.10%

Short % of Float
(as of Jun 28, 2013): 11.70%


Source: http://shadowstock.blogspot.com/2013/07/this-stock-was-down-40-today-previous.html



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